Square, the mobile payment-processing company started by Twitter co-founder Jack Dorsey, is trying to raise a new round of financing, according to a report.

Square is attempting to raise $200 million on a $6 billion valuation in its latest round of financing, CNBC reported Tuesday, citing people with knowledge of the company's plans. The Government of Singapore Investment Corporation, essentially a venture-capital arm for that country, could lead the round, according to the report.

Square, which processes billions of dollars in transactions each year through its mobile card-swiping device that allows users to take credit card transactions through smartphones and tablets, has been growing rapidly. Its valuation has grown in parallel. Earlier this year, Square allowed some employees and other owners to divest shares in a fundraising effort. At that time, the company valued itself at $5 billion.

The issue for Square has been competitive forces and margins. A wide range of companies, including major firms, like PayPal and Amazon, are vying with Square for mobile payments, making its pitch to customers more difficult. Meanwhile, Square is generating just 2.75 percent of revenue on all transactions made through its system. It then needs to pay credit card companies for the processing, leaving some investors wondering whether the company can be a long-term profit-generating business. As of this writing, Square is not believed to be profitable, though a CNBC report suggests Square could hit that mark next year.

If Square is successful at raising $200 million, it would be a major cash infusion for the company. Since its founding, Square has raised $350 million in venture funding.

CNET has contacted Square for comment. We will update this story when we have more information.

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